In a landmark initiative to rejuvenate Sri Lanka’s tourism industry, the Sri Lanka Tourism Development Authority (SLTDA) has announced the release of over 3,000 acres of State-owned land to attract both local and foreign investment. The move, aimed at drawing in $50–60 million, was unveiled last Friday (20) as part of a comprehensive strategy to unlock tourism potential through structured, transparent, and sustainable development.
Deputy Tourism Minister Prof. Ruwan Ranasinghe said the initiative includes the launch of a digital Land Bank Management Information System (LBMIS), a centralized platform for investors to access and select pre-evaluated land plots cleared for tourism development. “We are shifting from a reactive, ad-hoc process to a proactive, technology-led model,” he said.
Investment opportunities cover a broad spectrum including star-class hotels, eco-resorts, wellness retreats, boutique properties, MICE tourism facilities, agro-tourism, and integrated tourism hubs. Lands will primarily be offered on 33-year leases, and private landowners are also invited to partner with SLTDA to find viable investment matches.
The initiative comes with a strict compliance framework. “Projects that fail to meet development milestones will face repossession to prevent speculative holdings and delays,” Prof. Ranasinghe warned, citing past experiences where valuable land lay idle for years.
SLTDA Chairman Buddhika Hewawasam said tenders for the first round of proposals will open this week. “This is not a one-off event, but the beginning of a rolling, permanent process,” he noted, adding that $55 million in investments have already been secured this year across the Eastern and Northern provinces. Another 2,000 acres are expected to be added, expanding the available portfolio to nearly 5,000 acres.
The SLTDA is working with multiple State land-owning agencies—including the Urban Development Authority, Mahaweli Authority, Sri Lanka Railways, and the Forest Department—to identify and release additional viable lands for tourism. The agency’s Investment Relations Unit will operate as a one-stop-shop, streamlining a process that once required more than 21 separate approvals.
Key premium land areas now available for investment include:
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Dedduwa Lake Resort Area – 1,713 acres
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Uchchamunai, Kalpitiya Island Resort Zone – 1,095 acres
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Baththalangunduwa, Kalpitiya Island Resort Zone – 291 acres
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Kochchikade Beach Resort Zone – 74 acres
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Bentota National Holiday Resort Zone – 24 acres
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Pasikudah National Holiday Resort – 6.5 acres
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Bulanayaya, Pidurangala – 19 acres
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Rasool Thottam, Trincomalee – approx. 40 acres
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Allas Garden, Trincomalee – approx. 4 acres
For more details or to access the land bank, investors can visit: https://landbank.sltda.gov.lk
